ClockoutWhat is invoice aging?
Invoice aging is a report that categorizes outstanding invoices by how long they have been unpaid, typically in 30-day buckets (current, 1-30 days, 31-60 days, 61-90 days, 90+ days).
Invoice Aging explained
Invoice aging helps you prioritize collection efforts. Invoices become exponentially harder to collect as they age — invoices under 30 days overdue have a 95% collection rate, while invoices over 90 days drop to 73%. The aging report tells you where to focus follow-up energy.
Example
A freelancer's aging report shows: 2 invoices current ($4,500), 1 invoice 1-30 days overdue ($2,000), 1 invoice 31-60 days overdue ($3,500). The 31-60 day invoice needs immediate escalation.
How this connects to Clockout
Clockout shows invoice aging status on every client. Automated reminders at 3, 7, and 14 days past due mean most invoices never reach the 31-60 day bucket.
Related terms
Learn more
Accounts Receivable
Accounts receivable (AR) is the total money owed to a business by clients for invoiced work that has not yet been paid.
Days Sales Outstanding
Days sales outstanding (DSO) measures the average number of days it takes to collect payment after an invoice is sent.
Overdue Invoice
An overdue invoice is an invoice that has not been paid by the due date specified in the payment terms.
Questions, answered
Frequently asked questions
What is invoice aging?
Invoice aging is a report that categorizes outstanding invoices by how long they have been unpaid, typically in 30-day buckets (current, 1-30 days, 31-60 days, 61-90 days, 90+ days).
Why does invoice aging matter for freelancers?
Clockout shows invoice aging status on every client. Automated reminders at 3, 7, and 14 days past due mean most invoices never reach the 31-60 day bucket.
From definition to workflow
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